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APAVE Malaysia Sdn Bhd

1 MSPO_SUMMARYREPORT_NOV2018_REV01 MSPOPART3/NLFCSYPPINPKALVI/02/2019

MALAYSIAN SUSTAINABLE PALM OIL (MSPO)

STAGE 2

PUBLIC SUMMARY ASSESSMENT REPORT

Part 3: General Principles for Oil Palm

Plantations and Organized Smallholders

CLIENT NAME YAYASAN PEMBANGUNAN PENDIDIKAN INDIA NEGERI PERAK.

(Managed By NLFCS Koperasi Berhad)

ADDRESS KALVI ESTATE

GUNUNG BESOUT SUNGKAI, P.O.BOX NO.2, 35600 SUNGKAI, PERAK

Prepared by : Muhd Jamalul Arif

Report Number : MSPOPART3/NLFCSYPPINPKALVI/02/2019

Date of Completion : 29th November 2019

Certification Body : APAVE Malaysia Sdn Bhd

Address : Suite E603, 6th Floor, East Wing, Wisma Consplant 1, No. 2, Jalan SS16/4, 47500 Subang Jaya, Selangor, Malaysia.

Email : [email protected]

Tel : +603-50317668 Fax : +603-56214980

mailto:[email protected]



TABLE OF CONTENTS PAGE

SEGMENT 1

1. EXECUTIVE SUMMARY

1.1 Audit Methodology, Certification Assessment Scope and Recommendation

1.2 Certification Information And Company and Contact Details

1.3 Production and Forecasted

3

4

5

SEGMENT 2

2. ASSESSMENT Program

2.1. Qualification of Audit Team

5

SEGMENT 3

3. ASSESSMENT FINDINGS

3.1 Audit Information

3.2 Summary of the AOC and status

3.3 Findings by Principles and Criteria

6

6

7-38

SEGMENT 4

4. ACKNOWLEDGEMENT, CONCLUSION AND RECOMMENDATION OF THIS ASSESSMENT

4.1 Acknowledgement Of Sign Off Assessment Finding Summary

4.2 Sign 0ff of Assessment Finding Report

4.3 Annex 1

39

40

41



1 EXECUTIVE SUMMARY

1.1 Audit Methodology, Certification Assessment Scope and Recommendation

Audit Methodology

The methodology that practice to accumulate of target evidence involved procedures, review of documentation/data and record information. Checklist and guidance against the standard MS 2530-3:2013 Malaysian Sustainable Palm Oil (MSPO) Part 3: General principles for oil palm plantations and organized smallholders were utilized to direct the accumulation of data were a considered in the audit process to measure compliance.

Assessment Scope and Recommendation

APAVE Malaysia Sdn Bhd has performed the Stage 2 Assessment of Yayasan Pembangunan Pendidikan India Negeri Perak sited in Sungkai, Perak involving one plantation, namely Kalvi Estate on 15 – 16 November 2019. The company has established sustainability policy, objectives and procedures that define an effective system for the administration and control of sustainability management system throughout all operation activities of Kalvi Estate. Estate Manager is in charge and ensures that facility comply with the requirements and procedures stated in this manual. The management is committed to comply with MSPO system by giving awareness training to all personnel involved in this standard to make them understand the procedures and implementation of the standard. The employees are aware of the requirements of MSPO. There was no complaint or feedback received prior and during this Stage 2 Audit is conducted. Since the audit objectives as mentioned in the audit plan have been achieved and assessment resulted with no major non-conformity findings. Therefore, the lead auditor recommends to award the certificate of compliance MS 2530-3:2013 Malaysian Sustainable Palm Oil (MSPO) Part 3: General Principles for Oil Palm Plantations and Organized Smallholders to Yayasan Pembangunan Pendidikan India Negeri Perak (Kalvi Estate).



1.2 Certification Information and Company and Contact Details

Certification Body Apave Malaysia Sdn Bhd

Certification Body Address Suite E603, 6th Floor, East Wing, Wisma Consplant 1, No. 2 Jalan SS16/4, 47500 Subang Jaya, Selangor, Malaysia.

Certification Scope Part 3: General Principles for Oil Palm Plantations and Organized Smallholders

Report Number MSPOPART3/NLFCSYPPINPKALVI/02/2019

Certificate Number AMY-MSPOPRT3NLFCSYPPINPKALVI-003

Issue Date 30/12/2019

Expiry Date 29/12/2024

Unit Name (Estate/POM/Smallholder/ Independent Smallholder)

Yayasan Pembangunan Pendidikan India Negeri Perak. Managed by KOPERASI NLFCS BERHAD

Stage 1 Date 11/10/2019

Stage 2/Main Assessment Date 15th – 16th November 2019.

Annual Surveillance 1 (ASA1) 2020




Company Name Yayasan Pembangunan Pendidikan India Negeri Perak.

Site Name Kalvi Estate.

Site Address Gunung Besout Sungkai, P.O Box No. 2, 35600, Sungkai, Perak.

Longitude (Site Location)

E 101° 16’ 48’’ Latitude N 3° 52’ 16’’

Headquarter Address Level 10, Wisma Tun Sambanthan, Jalan Sultan Sulaiman, 50768, K. L.

Contact Person Mr. J. Jeyachandran

Contact Number 03 – 2273 1250

Fax Number 03 – 2274 0826

Email ID [email protected]

mailto:[email protected]



1.3 FFB Production and Projected FFB (MT)

Producer Total Area (ha) Total Planted Area (ha)

Projected (ha)

Actual Production

Forecasted for Next Year Jan –

Dec 2020

Kalvi Estate

806.63 ha

713.0 ha

N/A

N/A

10,000 MT

2 ASSESSMENT PROCESS

2.1 Qualification Of Audit Team

LEAD AUDITOR Muhd Jamalul Arif

QUALIFICATIONS

Graduated in Plantation Management and Cargo Surveying from local university. Experience in auditing since 2011 in RSPO P&C, SCCS, ISCC, GMP B2 & B3, ESCAS Animal Welfare and Global Gap standards. Working experience in handling Q&Q survey for agricultural products such palm oil, soybean, maize and sugar.

Involved in MSPO assessment since 2015, have more than 50 man-days in MSPO auditing for various companies and smallholder group. Completed ISO 9001:2008 Lead auditor in 2011, trained in ISO 19011 & 17021 requirements in 2014 and MSPO Auditors Training in 2015 conducted by MPOB.

In this audit he is covering on Social aspect, Best practices, Safety and Legal. Fluent in both speaking and writing Bahasa Malaysia and English.

2.2 Stakeholder Consultation

Subject raised / Identified Risk Company response and

proposed action to be taken. Assessment team findings

[Outcome]

En. Suhaimi (kilang Besout)

Good quality FFB sent to mill

Good communication

N/A Positive comments.

En. Alias (Ketua Peneroka)

- Environment concern of high water flow from Gunung Besout pass through Kalvi Estate.

Observed Kalvi Estate has taken appropriate action by maintaining good drainage and silt pit in estate area to slow down the rain water flows to community’s area.

Follow up action by community on the issue raise up during early stage of Kalvi Estate land development. No further verification required.



- Kalvi Estate has given good cooperation to resolve the issues.

- Machinery supply.

En. Salim (Community)

- Good road maintenance.

- Good income for local business such groceries, etc. from foreign workers.

N/A Positive comments.

VMO

- Every Wednesday (first week) visit.

- Accident monitoring on behalf Kalvi Estate.

- Conduct first aid training.

- No major accidents happen in past 12 months.

N/A Positive comments and suggestion.

3 ASSESSMENT FINDINGS

3.1 Audit Information

This assessment has been measured by applying the associated MSPO standardizing requirement. The

review subtleness are given in Appendix A (Audit Plan).

MS 2530-1: MSPO, PART 1: GENERAL PRINCIPLES FOR SUSTAINABLE PALM OIL

MS 2530-2: MSPO, PART 2: GENERAL PRINCIPLES FOR INDEPENDENT SMALLHOLDERS

MS 2530-3: MSPO, PART 3: GENERAL PRINCIPLES FOR OIL PALM PLANTATIONS AND ORGANIZED SMALLHOLDERS

X

MS 2530-4: MSPO, PART 4: GENERAL PRINCIPLES FOR PALM OIL MILLS



3.2 Summary of The Area Of Concern(AOC) And Status

Reference Number

Area of Concern (AOC)

01 Clause 4.4.1

Area/Location Kalvi Estate

Requirement Social impact should be identified and plans are implemented to mitigate the

negative impacts and promote the positive ones.

Summary of AOC SIA should be extend to more stakeholders involved in the process.

Conclusion of AOC SIA conducted was only focused on internal stakeholder input to consider into

positive and negative impact identification. Sighted involvement of external

stakeholders in meeting, however the issue raise during the meeting is not been

incorporated in above aspect and impact documentation.



3.3 Findings by Principles and Criteria

Principle 1 : 4.1 Management commitment & responsibility

Criterion 4.1.1 Malaysian Sustainable Palm Oil (MSPO) Policy

Indicator 4.1.1.1 A policy for the implementation of MSPO shall be established. - Major -

Finding Company have established few policies to show commitment on MSPO implementation such: - Sustainable Palm Oil Policy (3rd Dec 2019) - Social & Human Rights Policy (3rd Dec 2019) - Environmental Policy (Zero Burning) (3rd Dec 2019) - Policy statement on Occupational Safety and Health dated on 28th Sep 2017. All policies was signed by Datuk B. Sahadevan (MD) of NLFCS.

Compliance X Yes □ No □ NA

Indicator 4.1.1.2 The policy shall also emphasize commitment to continual Improvement. –Major-

Finding The Sustainable Palm Oil Policy has emphasized the on the continually improve our operations in line with social, environmental and economic aspects.

Compliance X Yes □ No □ Not Applicable

Criterion 4.1.2 Internal Audit

Indicator 4.1.2.1 Internal audit shall be planned and conducted regularly to determine the strong and weak points and potential area for further improvement. –Major-

Finding Sighted internal ‘’Audit Procedure’’ (Doc no: MSPO-01) date on 1st July 2018.

Internal audit is planned on annual basis. Sighted ‘’Annual Internal Audit Plan’’ prepared by N. Vigneswaran and approved by J. Jeyachandran. The internal audit was conducted by Mr N. Vigneswaran on 30th April 2019 with the outcome of 2 Non -Conformance findings. The Internal Audit exercise covers the following areas on documentation - MSPO Principles & Criteria.



The Non-Conformities being responded by Mr. R. Anbananthan, the Senior Manager on 30th April 2019.


Indicator 4.1.2.2 The internal audit procedures and audit results shall be documented and evaluated, followed by the identification of strengths and root causes of nonconformities, in order to implement the necessary corrective action.

–Major-

Finding Sighted internal ‘’Audit Procedure’’ (Doc no: MSPO-01) date on 1st July 2018 has emphasize on the identification of strengths and root causes of nonconformities, in order to implement the necessary corrective action.


Indicator 4.1.2.3 Report shall be made available to the management for their review. –Major-

Finding Sighted management review procedure Doc no: MSPO-02 date on 1st July 2018. One of the agenda should be discussed is ‘’Review on NC’’ during internal and external audit.

Management review meeting minutes is available during the audit. Last conducted on 3/05/2019 chaired by Senior Manager, Mr. Anbananthan.


Criterion 4.1.3 Management Review

Indicator 4.1.3.1 The management shall periodically review the continuous suitability, adequacy and effectiveness of the requirements for effective implementation of MSPO and decide on any changes, improvement and modification.

–Major-

Finding Sighted management review procedure Doc no: MSPO-02 date on 1st July 2018. One of the agenda should be discussed is ‘’Review on NC’’ during internal and external audit.

Management review meeting also has discussed on continuous suitability, adequacy and effectiveness of the requirements for effective implementation of MSPO and decide on any changes, improvement and modification.




Criterion 4.1.4 Continual Improvement

Indicator 4.1.4.1 The action plan for continual improvement shall be based on consideration of the main social and environmental impact and opportunities of the company.

–Major-

Finding Continual Improvement Plan has prepared based on 3 pillars: Operation activities 1. Mechanical harvesting (by Dec 2019) 2. Mechanical spreader (by Dec 2019) Social 1. Dispensary (By 2020) 2. Re-paints workers quarters 3. Provide green plants area 4. Domestic waste Environment 1. Schedule waste store (completed) 2. Planting beneficial plant 3. Pre-mix area (completed)


Indicator 4.1.4.2 The company shall establish a system to improve practices in line with new information and techniques or new industry standards and technology (where applicable) that are available and feasible for adoption.

–Major-

Finding Kalvi Estate has establish a plan to improve practices in line with new information and techniques or new industry standards and technology such as:

1. Mechanical harvesting (by Dec 2019)

2. Mechanical spreader (by Dec 2019)


Indicator 4.1.4.3 An action plan to provide the necessary resources including training, to implement the new techniques or new industry standard or technology (where applicable) shall be established. –Major-



Finding There is a plan to conduct training for mechanical harvesting & spreader by Dec 2019.


Principle 2 : 4.2 Transparency

Criterion 4.2.1 Transparency Of Information And Documents Relevant To MSPO Requirements

Indicator 4.2.1.1 The management shall communicate the information requested by the relevant stakeholders in the appropriate languages and forms, except those limited by commercial confidentiality or disclosure that could result in negative environmental or social outcomes. –Major-

Finding Yayasan Pembangunan Pendidikan India Negeri Perak has established Procedures on Stakeholders Consultation and Communication under MSPO Procedures Number 03 dated 1st July 2018 signed by Mr. J .Jayachandran, the General Manager. Internal stakeholder meeting was conducted on 7th October 2019 to Management Staffs and 3rd April 2019 & 16th May 2019 to all workers. External stakeholders Meeting was conducted on 24th April 2019 and 11th January 2019 attended by 17 participants and 10 participants respectively. Sighted sample record of request and response is maintained in MSPO Principle 2 file. Latest record sighted: Name: Farid Wahidi From: Lembaga Air Perak (LAP) Date: 11th Nov 2019 Information Request: Company SSM status for LAP meter purpose. Responded: Provide SSM for verification after estate manager permission. Date responded: 11th Nov 2019 by S. Prem Kumar.


Indicator 4.2.1.2 Management documents shall be publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. –Major-

Finding Sighted ‘’Documents That Can Be Publicly Made Available’’ date on 3rd Dec 2019 such as: - MSPO Sustainable Policy - OSH Policy - Environmental Policy - Social and Human Rights Policy - Land Titles - HBV Documentation



- HIRARC - CHRA - Etc. Should there is any enquiry, the manager has to complete the form no MSPO/P2/02 duly signed.

The estate SOP, Planting Circulars, Investments, financial is considered as confidential by management.


Criterion 4.2.2 Transparent method of communication and consultation

Indicator 4.2.2.1 Procedures shall be established for consultation and communication with the relevant stakeholders. –Major-

Finding Procedure title ‘’Stakeholders Communication & Consultation Procedure’’ (MSPO-03) date on 01/07/2018 approved by J. Jayachandran. The communication flow as tabulated such below: - Inform stakeholders - Consult stakeholders - Engage Stakeholders - Resolution Company implemented the 2 type of forms: - Grievance Form (Appendix 3) - Information Request Form – MSPO Related (MSPO/P2/02)


Indicator 4.2.2.2 A management official should be nominated to be responsible for issues related to Indicator 1 at each operating unit. –Minor-

Finding Nominated person to be responsible for consultation and communication in Kalvi Estate is S. Prem Kumar as nominated on 5th July 2019.


Indicator 4.2.2.3 List of stakeholders, records of all consultation and communication and records of action taken in response to input from stakeholders should be properly maintained. –Major-



Finding Sighted latest version of stakeholder list date on 16/05/2019 consist of internal and external stakeholder list. Estate have identified 11 internal and 35 external stakeholders in the list completed with name, address, and contact person and phone. Record of communication such stakeholder meeting available: 1) 11th Jan 2019 – All contractors attended. No issue is been raise as meeting minutes evidence.

2) 24th April 2019 – Attended by communities, panel clinic, neighboring estate. The issue discussed such explanation on communication and complaints procedure by the company.


Criterion 4.2.3 Traceability

Indicator 4.2.3.1 The management shall establish, implement and maintain a standard operating procedure to comply with the requirements for traceability of the relevant product(s).

–Major-

Finding ‘’FFB Traceability Procedure’’ (Doc no: MSPO-04) date on 1st July 2018 is establish and implemented. Evidence sighted from field in ‘’Bunches Record’’ based on field/block number, name, date and quantity. Information passed to mill such date, vehicle number, time in/out and seal number as sighted in FFB Delivery Order evidence chit #0419 on 02/10/19 for block 03, 350 bunches (1.40 MT) and vehicle number BNM 1256 on time 4.55pm from estate (Trip 2) on Oct 2019).


Indicator 4.2.3.2 The management shall conduct regular inspections on compliance with the established traceability system.

–Major-

Finding The Management team on harvesting holds the responsibility on regular inspection of traceability system.

Periodical inspections also being conducted through General Manager, Internal Audit and Agronomist visit. The effectiveness of the monitoring will evidence in the internal audit and visit report findings.


Indicator 4.2.3.3 The management should identify and assign suitable employees to implement and maintain the traceability system.

–Minor-



Finding Mdm. P. Enkayamh and Mr. R. Micheal Dass is the appointed person to ensure the implementation of the traceability procedure.


Indicator 4.2.3.4 Records of sales, delivery or transportation of FFB shall be maintained. –Major-

Finding Evidence sighted from field in ‘’Bunches Record’’ based on field/block number, name, date and quantity. Information passed to mill such date, vehicle number, time in/out and seal number as sighted in FFB Delivery Order evidence chit #0419 on 02/10/19 for block 03, 350 bunches (1.40 MT) and vehicle number BNM 1256 on time 4.55pm from estate (Trip 2) on Oct 2019).


Principle 3 : 4.3 Compliance To Legal Requirements

Criterion 4.3.1 Regulatory Requirements

Indicator 4.3.1.1 All operations are in compliance with the applicable local, state, national and ratified international laws and regulations.

–Major-

Finding Yayasan Pembangunan Pendidikan India Negeri Perak has established Procedures on Management of Legal Compliance under MSPO Procedure 04 dated 1st November 2017 signed by Mr. Mr .J .Jayachandran, the General Manager.

The estate has established list of applicable laws and regulations. The legal register is prepared by Mr. S. Prem Kumar on 29th April 2019. There is document ‘’Summary of Compliance’’ showing all relevant legal requirement applicable at Kalvi Estate. Among the laws applicable such: - OSH Act 1994 - FMA 1967 - Fire Services Act 1988 - Pesticides Act 1974 (Act 149) - EQA 1974 (Act 127).




Indicator 4.3.1.2 The management shall list all laws applicable to their operations in a legal requirements register.

–Major-

Finding List of permits applicable at Kalvi Estate available such: - MPOB License: 595601002000 valid till 29/02/2020 for 806.63 Ha) - Housing CF approved on 14th March 2018. - KPDNKK Diesel permit (A 000009-TPH) valid till 11.02.2020 for 5,400 Liters. - Fire Extinguishers inspection valid till 25/10/2020.


Indicator 4.3.1.3 The legal requirements register shall be updated as and when there are any new amendments or any new regulations coming into force.

–Major-

Finding As per interviewed with Mr. S. Prem Kumar, he will update any new amendments or any regulations once received through the communication with HQ officers, circulars and media.


Indicator 4.3.1.4 The management should assign a person responsible to monitor compliance and to track and update the changes in regulatory requirements.

–Minor-

Finding Responsible person for legal requirements implementation is Mdm. P. Enkayamah and Mr. S. Prem Kumar.


Criterion 4.3.2 Land Use Rights

Indicator 4.3.2.1 The management shall ensure that their oil palm cultivation activities do not diminish the land use rights of other users.

–Major-

Finding Land title consist of 4 plots: - HSD 20282 (509.67 Ha) - HSD 20283 (46.11 Ha) - HSD 20284 (201.46 Ha) - HSD 20285 (49.39 Ha)



All titles is under Yayasan Pembangunan Pendidikan India Negeri Perak and with Syarat Nyata – Tanaman Komersial- Kelapa Sawit.


Indicator 4.3.2.2 The management shall provide documents showing legal ownership or lease, history of land tenure and the actual use of the land.

–Major-

Finding Sighted quit rent for 2019 for all 4 land titles for amount RM12, 102 paid by Kalvi Estate to Negeri Perak Council.


Indicator 4.3.2.3 Legal perimeter boundary markers should be clearly demarcated and visibly maintained on the ground where practicable.

–Major-

Finding The estate boundary is well demarcated with boundary markers surrounding the land. The boundary markers clearly state the GPS coordinate of that particular point. Maps clearly showing the estate boundary were also sighted during the audit.


Indicator 4.3.2.4 Where there are, or have been, disputes, documented proof of legal acquisition of land title and fair compensation that have been or are being made to previous owners and occupants; shall be made available and that these should have been accepted with free prior informed consent (FPIC).

–Minor-

Finding No land disputes is recorded.


Criterion 4.3.3 Customary Rights

Indicator 4.3.3.1 Where lands are encumbered by customary rights, the company shall demonstrate that these rights are understood and are not being threatened or reduced.

–Major-





Indicator 4.3.3.2 Maps of an appropriate scale showing extent of recognized customary rights land, if any, should made available.

–Minor-



Indicator 4.3.3.3 Negotiation and FPIC shall be recorded and copies of negotiated agreements should be made available.

–Major-



Principle 4 : 4.4 Social Responsibility, Health, Safety and Employment Condition

Criterion 4.4.1 Social Impact Assessment (SIA)

Indicator 4.4.1.1 Social impact should be identified and plans are implemented to mitigate the negative impacts and promote the positive ones.

–Minor-

Finding Yayasan Pembangunan Pendidikan India Negeri Perak has established Procedures on Social Impact Assessment under MSPO Procedure 09 dated 1st July 2018 signed by Mr. Mr. J. Jayachandran, the General Manager.

Social Impact Assessment (SIA) is conducted on 5th Sep 2019 for internal stakeholders such staff and workers.




Criterion 4.4.2 Complaints And Grievances

Indicator 4.4.2.1 A system for dealing with complaints and grievances shall be established and documented. –Major-

Finding Procedure title ‘’Stakeholders Communication & Consultation Procedure’’ (MSPO-03) date on 01/07/2018 approved by J. Jayachandran. The communication flow as tabulated such below: - Inform stakeholders - Consult stakeholders - Engage Stakeholders - Resolution Company implemented the 2 type of forms: - Grievance Form (Appendix 3) - Information Request Form – MSPO Related (MSPO/P2/02)


Indicator 4.4.2.2 The system shall be able to resolve disputes in an effective, timely and appropriate manner that is accepted by all parties.

–Major-

Finding Procedure title ‘’Stakeholders Communication & Consultation Procedure’’ (MSPO-03) date on 01/07/2018 approved by J. Jayachandran. The communication flow as tabulated such below: - Inform stakeholders - Consult stakeholders - Engage Stakeholders - Resolution

All the issues is must completed within 14 days. Sighted the evidence of complaint record on 17/09/2019 regarding road condition issue, been resolved and taken action on 19/09/2019 by management.


Indicator 4.4.2.3 A complaint form should be made available at the premises, where employees and affected stakeholders can make a complaint.

–Minor-

Finding Complaint form is available at estate office entrance. It is accessible by any parties to reach.




Indicator 4.4.2.4 Employees and the surrounding communities should be made aware that complaints or suggestions can be made any time.

–Minor-

Finding Internal stakeholder meeting was conducted on 7th October 2019 to Management Staffs and 3rd April 2019 & 16th May 2019 to all workers.

External stakeholders Meeting was conducted on 24th April 2019 and 11th January 2019 attended by 17 participants and 10 participants respectively.


Indicator 4.4.2.5 Complaints and resolutions for the last 24 months shall be documented and made available to affected stakeholders upon request.

–Major-

Finding This is initial assessment for Kalvi Estate. 6 complaint and resolutions recorded for the last 24 months.


Criterion 4.4.3 Commitment To Contribute To Local Sustainable Development

Indicator 4.4.3.1 Growers should contribute to local development in consultation with the local communities. –Minor-

Finding Kalvi Estate has record of CSR made based on consultation with communities such as:

1. 10/04/2019: Road grading and drain on main road (Felda). 2. 19/04/19: Digging water catchment area at Felda boundary. 3. 16/05/2019: Planting beneficial plant at main roadside. 4. 21/09/2019: Roadside pruning at main road (Felda) 5. Kalvi Estate itself is part of CSR program under Yayasan Pembangunan Pendidikan India

Negeri Perak which is total profit is distributed into 123 schools in Malaysia.


Criterion 4.4.4 Employees Safety And Health

Indicator 4.4.4.1 An occupational safety and health policy and plan shall be documented, effectively communicated and implemented.

–Major-



Finding OSH Policy is established title ‘’Policy Statement on Occupational Safety & Health’’ date on 21 May 2018 signed by Datuk B. Sahadevan (MD).


Indicator 4.4.4.2 The occupational safety and health plan shall cover the following:

a) A safety and health policy, which is communicated and implemented. b) The risks of all operations shall be assessed and documented. c) An awareness and training programme which includes the following requirements for employees exposed to pesticides: i. all employees involved shall be adequately trained on safe working practices ii. all precautions attached to products shall be properly observed and applied d) The management shall provide the appropriate PPE at the place of work to cover all potentially hazardous operations as identified in the risk assessment and control such as Hazard Identification, Risk Assessment and Risk Control (HIRARC). e) The management shall establish Standard Operating Procedure for handling of chemicals to ensure proper and safe handling and storage in accordance to Occupational Safety Health (Classification Packaging and Labeling) Regulation 1997 and Occupational Safety Health (Use and Standard of Exposure of Chemical Hazardous to Health) Regulation 2000. f) The management shall appoint responsible person(s) for workers' safety and health. The appointed person(s) of trust must have knowledge and access to latest national regulations and collective agreements. g) The management shall conduct regular two-way communication with their employees where issues affecting their business such as employee’s health, safety and welfare are discussed openly. Records from such meeting are kept and the concerns of the employees and any remedial actions taken are recorded. h) Accident and emergency procedures shall exist and instructions shall be clearly understood by all employees. i) Employees trained in First Aid should be present at all field operations. A First Aid Kit equipped with approved contents should be available at each worksite. j) Records shall be kept of all accidents and be reviewed periodically at quarterly intervals.

–Major-

Finding a) OSH Policy is established title ‘’Policy Statement on Occupational Safety & Health’’ date on

21 May 2018 signed by Datuk B. Sahadevan (MD). b) HIRARC is available date on 15/08/2019 for only focused on main activities only such

harvesting, spraying, culvert maintenance and tractor running. c) OSH training programme being established and documented and include chemical

application training for spraying. d) Evidence, PPE Issuance and replacement record to staff and workers.

i. Harvester – Safety helmet, wellington boots ii. Carrier – Safety helmet, wellington boots and cotton glove. iii. Sprayer – Helmet, goggles, respiratory (3M 8210), apron, nitrile glove (green gloves), towel,

wellington boots.



Sighted, CHRA was conducted by Sivakumar a/l Chinnasamy, HQ/08/ASS/00/250 dated 26th July 2018. The management have established Standard Operating Procedure for handling of chemicals to ensure proper and safe handling and storage.

e) SOP 1 – 12 is about handling of chemicals is established. Sample sighted such SOP for spraying, mixing, spillage, storage, transportation, PPE usage and etc.

f) The chairman, Mr. R. Anbanathan was appointed on 27th June 2018 by Mr. J.Jayachandran, the General Manager.

g) Evidence OSH Committee being established and meeting was conducted in the Estate. OSH committee meeting is conducted every 3 months. Last meeting on 18/10/2019 as sighted meeting minutes.

h) Sighted procedure for Accident reporting involving Chemical available. However, company could be further improved with other emergency and accident procedure such harvesting, handling tractors and natural disasters.

i) First aid training conducted on 16yh May 2019 by VMO, Dr. Fakhrul Hakimi. First aid kit available at working station as verified during field visit and interview with sprayers and harvester.

j) No accident is being recorded. The estate has registered to my-JKKP dated 9th January 2019.The registration number is PK/19/04/133373.


Criterion 4.4.5 Employment Conditions

Indicator 4.4.5.1 The management shall establish policy on good social practices regarding human rights in respect of industrial harmony. The policy shall be signed by the top management and effectively communicated to the employees.

–Major-

Finding Yayasan Pembangunan Pendidikan India Negeri Perak has established Social and Human Rights Policy dated 3rd December 2018 signed by Datuk B. Sahadevan, PJN., SSA., PPT., ANS the Managing Director. This policy covers: -

a. Compliance with labour laws, land title laws and workers’ housing and amenities. b. Prohibit employing worker by coercion or under age c. Paying salaries to employees and staff on a minimum a wage order d. Respect and protect Human Rights and workers’ Rights ( including temporary workers,

contracts or foreign workers ) e. Freely of discrimination and prejudice against gender, race, religion, nationality and

political views f. Provide a harmonious work environment to employees, customers and stakeholders g. Provide workplace free of sexual harassment whether directly or indirectly against all

workers, societies and stakeholders.


Indicator 4.4.5.2 The management shall not engage in or support discriminatory practices and shall provide equal opportunity and treatment regardless of race, colour, sex, religion, political opinion, nationality, social origin or any other distinguishing characteristics.



–Major-

Finding Sighted in the Social and Human Rights Policy on Free from discriminatory practices against sex, race, religion, nationality and political opinions. Cross verified during interview and consultation with workers and stakeholders.


Indicator 4.4.5.3 Management shall ensure that employees’ pay and conditions meet legal or industry minimum standards and as per agreed Collective Agreements. The living wage should be sufficient to meet basic needs and provide some discretionary income based on minimum wage.

–Major-

Finding Sighted in the Social Policy on Paying salaries to employees and staff on a minimum a wage order. Pay and conditions are documented in the workers’ Contract Agreement and wage payment records / pay slip.

The salary is according to ‘Guidelines on the Implementation on the Minimum Wages’. National Wages Consultative Council Act 2018 (Act 732) Malaysian minimum salary is RM1100.00 as stated in the guidelines.


Indicator 4.4.5.4 Management should ensure employees of contractors are paid based on legal or industry minimum standards according to the employment contract agreed between the contractor and his employee.

–Minor-

Finding No contractor being engaged in the Estate


Indicator 4.4.5.5 The management shall establish records that provide an accurate account of all employees (including seasonal workers and subcontracted workers on the premises). The records should contain full names, gender, date of birth, date of entry, a job description, wage and the period of employment.

–Major-

Finding Sighted, the Registration Card of the workers which stated the offered position, employee number and date joined.




Indicator 4.4.5.1 All employees shall be provided with fair contracts that have been signed by both employee and employer. A copy of employment contract is available for each and every employee indicated in the employment records.

–Major-

Finding Sighted, Employment Contract between Estate and the workers. The Agreement stated all the term and conditions according to Malaysian Law. This contract is signed by both employee and employer.


Indicator 4.4.5.7 The management shall establish a time recording system that makes working hours and overtime transparent for both employees and employer.

–Major-

Finding The Management has established Time Recording System based on Pocket Check-roll to workers. Defined working time by management as below: 6.30am – 2.30pm Rest time: 10.30am – 11.00am

Overtime is paid based on rate 1.5 (RM7.93)/hour.


Indicator 4.4.5.8 The working hours and breaks of each individual employee as indicated in the time records shall comply with legal regulations and collective agreements. Overtime shall be mutually agreed and shall always be compensated at the rate applicable and shall meet the applicable legal requirement.

–Major-

Finding The working hour and break time have been clearly stated in the Employment Contract. Sighted in the Contract Agreement the rate of overtime which agreed by both parties.


Indicator 4.4.5.9 Wages and overtime payment documented on the pay slips shall be in line with legal regulations and collective agreements.

–Major-



Finding Sample of Pay Slip and Employment Contracts of numerous workers is verified. Pay slip is complete with appropriate information such breakdown of working hours, rate per hours, overtime details, deduction, gross and net payment.

All workers is provided with copy of the payslip.


Indicator 4.4.5.10 Wages and overtime payment documented on the pay slips shall be in line with legal regulations and collective agreements.

–Minor-

Finding All workers have been provided with medical and accident insurance. With regards to local workers, staffs and executives, all of them are covered under EPF & SOCSO as required by the Malaysian Laws and Regulations. For Bangladeshi workers, being covered under SOCSO since April 2019. Other incentives provided such:

Mandore incentive – Rm3/day

Driver incentive – RM 2/day


Indicator 4.4.5.11 In cases where on-site living quarters are provided, these quarters shall be habitable and have basic amenities and facilities in compliance with the Workers' Minimum Standards Housing and Amenities Act 1990 (Act 446) or any other applicable legislation.

–Major-

Finding All workers are provided with housing facilities at workers linesite, surau, volleyball, and cricket field. Water and electricity is provided free to all workforce.

Visit to workers quarters found the condition is habitable, hygiene and complete with basic amenities such pantry, toilet and bed.


Indicator 4.4.5.12 The management shall establish a policy and provide guidelines to prevent all forms of sexual harassment and violence at the workplace.

–Major-

Finding Yayasan Pembangunan Pendidikan India Negeri Perak has established Social and Human Rights Policy dated 3rd December 2018 signed by Datuk B. Sahadevan, PJN.,SSA.,PPT.,ANS the Managing Director.



This policy stated ‘’to provide workplace free of sexual harassment whether directly or indirectly against all workers, societies and stakeholders’’.


Indicator 4.4.5.13 The management shall respect the right of all employees to form or join trade union and allow workers own representative(s) to facilitate collective bargaining in accordance with applicable laws and regulations. Employees shall be given the freedom to join a trade union relevant to the industry or to organize themselves for collective bargaining. Employees shall have the right to organize and negotiate their work conditions. Employees exercising this right should not be discriminated against or suffer repercussions.

. –Major-

Finding No trade union established in Kalvi Estate. However, workers have appointed among themselves the mediator for communication with management.


Indicator 4.4.5.14 Children and young persons shall not be employed or exploited. The minimum age shall comply with local, state and national legislation. Work by children is acceptable on family farms, under adult supervision, and when not interfering with their education programmes. Children shall not exposed to hazardous working conditions.

–Major-

Finding Yayasan Pembangunan Pendidikan India Negeri Perak has established Social and Human Rights Policy dated 3rd December 2018 signed by Datuk B. Sahadevan, PJN.,SSA.,PPT.,ANS the Managing Director.

Company policy has stated prohibit the children and young person in the Social & Human Rights Policy (clause no.2).


Criterion 4.4.6 Training And Competency

Indicator 4.4.6.1 All employees, contractors and relevant smallholders are appropriately trained. A training programme (appropriate to the scale of the organization) that includes regular assessment of training needs and documentation, including records of training shall be kept.

–Major-



Finding Yearly training plan is created based on Training Needs Analysis for workers involved in the operations.


Indicator 4.4.6.2 Training needs of individual employees shall be identified prior to the planning and implementation of the training programmes in order to provide the specific skill and competency required to all employees based on their job description.

–Major-

Finding Yearly training plan is created based on Training Needs Analysis for workers involved in the operations. Sighted the Training Need Analysis of all workers, staffs and Management which are based on their competencies and job description.


Indicator 4.4.6.3 A continuous training programme should be planned and implemented to ensure that all employees are well trained in their job function and responsibility, in accordance to the documented training procedure.

–Minor-

Finding Yearly training plan is created based on Training Needs Analysis for workers involved in the operations. Sighted the Training Need Analysis of all workers, staffs and Management which are based on their competencies and job description.


Principle 5 : 4.5 Environmental , Natural Resources, Biodiversity and Ecosystem Services

Criterion 4.5.1 Environmental Management Plan

Indicator 4.5.1.1 An environmental policy and management plan in compliance with the relevant country and state environmental laws shall be developed, effectively communicated and implemented.

–Major-

Finding Yayasan Pembangunan Pendidikan India Negeri Perak has established Environmental Policy dated 3rd December 2018 signed by Datuk B. Sahadevan, PJN.,SSA.,PPT.,ANS the Managing Director. Based on the Environmental Policy, the Company is committed towards implementing the following practices:



1. All estate operations are in accordance with the established statutory and regulatory requirements especially those relating to Environment Quality.

2. To practice a “Zero Burning” policy on new planting, replanting except in specific situations. 3. To ensure that estate activities follow the guidelines of current industry practices 4. To plan, implement, monitor and measure predetermined activities to mitigate environmental

impacts and greenhouse effect. 5. To promote and provide the awareness on environmental protection to all employees and

stakeholders 6. Ensure awareness of the environmental policy is communicated, understood and practiced by

all relevant employees and stakeholders.

There is EIA conducted by Europasia Engineering Services Sdn Bhd in initial development of Kalvi Estate.


Indicator 4.5.1.2 The environmental management plan shall cover the following: a) An environmental policy and objectives; b) The aspects and impacts analysis of all operations.

–Major-

Finding Sighted, Environmental Compliance and Monitoring Report being established and documented by Europasia Engineering Services Sdn Bhd , DOE Ref: AS (B) A11/123/000/013 jld (2)(26) in June 2019.


Indicator 4.5.1.3 An environmental improvement plan to mitigate the negative impacts and to promote the positive ones, shall be developed, effectively implemented and monitored.

–Major-

Finding Sighted, Environmental Compliance and Monitoring Report being established and documented by Europasia Engineering Services Sdn Bhd , DOE Ref: AS (B) A11/123/000/013 jld (2)(26) in June 2019.


Indicator 4.5.1.4 A programme to promote the positive impacts should be included in the continual improvement plan.

–Minor-



Finding Sighted, the continual improvement plan on environmental being established and developed. This is included practice on water quality analysis of river water, maintaining riparian zone and field drainage for rain water harvesting.


Indicator 4.5.1.5 An awareness and training programme shall be established and implemented to ensure that all employees understand the policy and objectives of the environmental management and improvement plans and are working towards achieving the objectives.

–Major-

Finding Sighted the Training Need Analysis of all workers, staffs and Management which are based on their competencies and job description. Sighted training conducted such:

i. Environmental Policy Training ii. Riparian Zone and Spraying Training


Indicator 4.5.1.6 Management shall organize regular meetings with employees where their concerns about environmental quality are discussed.

–Major-

Finding Sighted record of meeting available for Environmental Meeting being conducted on 5th August 2019 attended by 8 personnel. The meeting chaired by the Sr. Manager.


Criterion 4.5.2 Efficiency of Energy Use And Use Of Renewable Energy

Indicator 4.5.2.1 Consumption of non-renewable energy shall be optimized and closely monitored by establishing baseline values and trends shall be observed within an appropriate timeframe. There should be a plan to assess the usage of non-renewable energy including fossil fuel, electricity and energy efficiency in the operations over the base period.

–Major-

Finding Sighted record of actual non – renewable energy being established and documented on diesel and electricity usage.




Indicator 4.5.2.2 The oil palm premises shall estimate the direct usage of non-renewable energy for their operations, including fossil fuel, and electricity to determine energy efficiency of their operations. This shall include fuel use by contractors, including all transport and machinery operations.

–Major-

Finding Sighted record of actual non – renewable energy being established and documented on diesel and electricity usage.


Indicator 4.5.2.3 The use of renewable energy should be applied where possible. –Minor-

Finding Estate not apply any renewable energy at the moment.


Criterion 4.5.3 Waste Management And Disposal

Indicator 4.5.3.1 All waste products and sources of pollution shall be identified and documented. –Major-

Finding Yayasan Pembangunan Pendidikan India Negeri Perak has established Procedures on Waste Management under MSPO Procedure 05 dated 1st July 2018 signed by Mr. Mr.J.Jayachandran, the General Manager.


Indicator 4.5.3.2 A waste management plan to avoid or reduce pollution shall be developed and implemented. The waste management plan should include measures for: a) Identifying and monitoring sources of waste and pollution b) Improving the efficiency of resource utilization and recycling of potential wastes as nutrients or converting them into value-added by-products

–Major-



Finding Yayasan Pembangunan Pendidikan India Negeri Perak has established Procedures on Waste Management under MSPO Procedure 05 dated 1st July 2018 signed by Mr. Mr.J.Jayachandran, the General Manager. The management plan includes:

a. Identifying and monitoring sources of waste and pollution b. Improving the efficiency of resource utilization and recycling of potential wastes as

nutrients or converting them into value-added by-products.


Indicator 4.5.3.3 The management shall establish Standard Operating Procedure for handling of used chemicals that are classified under Environment Quality Regulations (Scheduled Waste) 2005, Environmental Quality Act, 1974 to ensure proper and safe handling, storage and disposal.

–Major-

Finding The management have established Standard Operating Procedure for handling of chemicals to ensure proper and safe handling and storage. This is related with Procedures on Waste Management under MSPO Procedure 05 dated 1st July 2018 signed by Mr. Mr.J.Jayachandran, the General Manager.


Indicator 4.5.3.4 Empty pesticide containers shall be punctured and disposed in an environmentally and socially responsible way, such that there is no risk of contamination of water sources or to human health. The disposal instructions on manufacturer’s labels should be adhered to. Reference should be made to the national programme on recycling of used HDPE pesticide containers.

–Major-

Finding Empty containers is triple rinse and punctured. Estate treat the containers as schedule waste therefore been disposed by Primochem (license SW collector). Last disposal on 12/04/2019 for 1.7765 MT.


Indicator 4.5.3.5 Domestic waste should be disposed as such to minimize the risk of contamination of the environment and watercourses.

–Minor-

Finding Domestic waste from linesite is disposed at landfill located Block B2 i.e. 0.4 KM from linesite.




Criterion 4.5.4 Reduction Of Pollution And Emission

Indicator 4.5.4.1 An assessment of all polluting activities shall be conducted, including greenhouse gas emissions, scheduled wastes, solid wastes and effluent.

–Major-


a. Identifying and monitoring sources of waste and pollution (schedule waste, domestic waste)

b. Improving the efficiency of resource utilization and recycling of potential wastes as nutrients or converting them into value-added by-products. (frond stacking, EFB application)


Indicator 4.5.4.2 An action plan to reduce identified significant pollutants and emissions shall be established and implemented.

–Major-


a. Identifying and monitoring sources of waste and pollution (schedule waste, domestic

waste) – Appoint license SW collector for disposal.

b. Improving the efficiency of resource utilization and recycling of potential wastes as

nutrients or converting them into value-added by-products. (frond stacking, EFB

application) – Consistent implementation observed on field.


Criterion 4.5.5 Natural Water Resources

Indicator 4.5.5.1 The management shall establish a water management plan to maintain the quality and availability of natural water resources (surface and ground water). The water management plan may include: a. Assessment of water usage and sources of supply.



b. Monitoring of outgoing water which may have negative impacts into the natural waterways at a frequency that reflects the estate’s current activities. c. Ways to optimize water and nutrient usage to reduce wastage (e.g. having in place systems for re-use, night application, maintenance of equipment to reduce leakage, collection of rainwater, etc.). d. Protection of water courses and wetlands, including maintaining and restoring appropriate riparian buffer zones at or before planting or replanting, along all natural waterways within the estate. e. Where natural vegetation in riparian areas has been removed, a plan with a timetable for restoration shall be established and implemented. f. Where bore well is being use for water supply, the level of the ground water table should be measured at least annually

–Major-

Finding Water management plan (MSPO-08) date on 01/07/2018 as included:

Source Management Plan Monitoring Plan

Lembaga Air Perak - To ensure the water pump house is maintained in good condition and readily available in case of any water disruption

- To monitor the domestic usage on monthly basis

River Water - 5 sampling point for Sg. Erong Som and Sg. Erong Jangkar.

- To set aside a minimum of 20m riparian zone along the river boundary

- To erect riparian zone signboard - To paint red and white bands on

frond butt/trunk - To ensure no spraying and

manuring activity is conducted at the riparian zone.

- To monitor the river regularly using Management Area Monitoring Checklist

- Monitor rainfall record


Indicator 4.5.5.2 No construction of bunds, weirs and dams across main rivers or waterways passing through an estate.

–Minor-

Finding No construction of bunds, weirs and dams across main rivers or waterways passing through estate. Evidence observed during site visit to Sg. Erong Som and Sg. Erong Jangkar.


Indicator 4.5.5.3 Water harvesting practices should be implemented (e.g. water from road-side drains can be directed and stored in conservation terraces and various natural receptacles).

–Minor-



Finding Kalvi Estate has practicing proper drainage and silt pits to collect rain water. Verified during field visit in surrounding Kalvi Estate compound.


Criterion 4.5.6 Status Of Rare, Threatened, Or Endangered Species And High Biodiversity Value

Indicator 4.5.6.1 Information shall be collated that includes both the planted area itself and relevant wider landscape-level considerations (such as wildlife corridors). This information should cover: a) Identification of high biodiversity value habitats, such as rare and threatened ecosystems, that could be significantly affected by the grower(s) activities. b) Conservation status (e.g. The International Union on Conservation of Nature and Natural Resources (IUCN) status on legal protection, population status and habitat requirements of rare, threatened, or endangered species), that could be significantly affected by the grower(s) activities.

–Major-

Finding Yayasan Pembangunan Pendidikan India Negeri Perak has established Procedures on Rare, Threatened and Endangered & High Biodiversity Management under MSPO Procedure 07 dated 1st July 2018 signed by Mr.J.Jayachandran, the General Manager.


Indicator 4.5.6.2 If rare, threatened or endangered species, or high biodiversity value, are present, appropriate measures for management planning and operations should include: a) Ensuring that any legal requirements relating to the protection of the species are met. b) Discouraging any illegal or inappropriate hunting, fishing or collecting activities; and developing responsible measures to resolve human-wildlife conflicts.

–Major-

Finding There is no status of rare, threatened, or endangered species and high biodiversity value area in the estate. Thus, no management plan has been established by estate management. However, estate conducted briefing regarding the Sustainability Policy that includes RTE species.


Indicator 4.5.6.3 A management plan to comply with Indicator 1 shall be established and effectively implemented, if required.

–Major-



Finding There is no status of rare, threatened, or endangered species and high biodiversity value area in the estate. Thus, no management plan has been established by estate management. However, estate conducted briefing regarding the Sustainability Policy that includes RTE species.


Criterion 4.5.7 Zero Burning Practices

Indicator 4.5.7.1 Use of fire for waste disposal and for preparing land for oi l palm cultivation or replanting shall be avoided except in specific situations, as identified in regional best practice.

–Major-

Finding Yayasan Pembangunan Pendidikan India Negeri Perak has established Environmental Policy dated 3rd December 2018 signed by Datuk B. Sahadevan, PJN.,SSA.,PPT.,ANS the Managing Director. Based on the Environmental Policy, the Company is committed towards implementing the following practices:

To practice a “Zero Burning” policy on new land development and replanting activities


Indicator 4.5.7.2 A special approval from the relevant authorities shall be sought in areas where the previous crop is highly diseased and where there is a significant risk of disease spread or continuation into the next crop.

–Major-

Finding No recent new planting or replanting in the Kalvi Estate.


Indicator 4.5.7.3 Where controlled burning is allowed, it shall be carried out as prescribed by the Environmental Quality (Declared Activities) (Open Burning) Order 2003 or other applicable laws.

–Major-





Indicator 4.5.7.4 Previous crops should be felled or mowed down, chipped and shredded, windrowed or pulverized or ploughed and mulched.

–Minor-



Principle 6 : 4.6 Best Practices

Criterion 4.6.1 Site Management

Indicator 4.6.1.1 Standard operating procedures shall be appropriately documented and consistently implemented and monitored.

–Major-

Finding Kalvi Estate has practicing National Land Finance Co-operative Society Limited; Standard Operating Procedures base on Planting Circular dated June 2008.


Indicator 4.6.1.2 Where oil palm is grown within permitted levels on sloping land, appropriate soil conservation measures shall be implemented to prevent both soil erosion as well as siltation of drains and waterways. Measures shall be put in place to prevent contamination of surface and groundwater through runoff of either soil, nutrients or chemicals.

–Major-

Finding Sighted implementation on site several silt pits and drain is well maintained.

Planting on high degrees (



Indicator 4.6.1.3 A visual identification or reference system shall be established for each field. -Major-

Finding Visual identification and reference system is available at Kalvi Estate. Sighted marking for year planted, clone and total stand in each field is clearly defined during field visit.


Criterion 4.6.2 Economic And Financial Viability Plan

Indicator 4.6.2.1 A documented business or management plan shall be established to demonstrate attention to economic and financial viability through long-term management planning. -Major-

Finding Kalvi Estate had an annual budget for the 2019/2020. The estate budget includes the projected FFB and cost of production. Sighted crop projection for next 3 years under Kalvi Estate:

Year FFB (MT)

2019 12,000

2020 13,000

2021

15,000


Indicator 4.6.2.2 Where applicable, an annual replanting programme shall be established. Long term replanting programme should be established and review annually, where applicable every 3- 5 years. -Major-

Finding No replanting programme in the Estate for next 5 years.


Indicator 4.6.2.3 The business or management plan may contain: a) Attention to quality of planting materials and FFB b) Crop projection: site yield potential, age profile, FFB yield trends c) Cost of production : cost per tonne of FFB d) Price forecast e) e) Financial indicators : cost benefit, discounted cash flow, return on investment -Major-



Finding a. Planting NPM (Nalfin Planting Material) and Felda. b. Crop projection for next 3 years available. c. Cost production: For 2020 – 2022 available.

i. 2020: RM380,000 ii. 2021: RM370,000 iii. 2022: RM330,000

d. CPO prices estimation available in ‘’FFB Sales Statement’’


Indicator 4.6.2.4 The management plan shall be effectively implemented and the achievement of the goals and objectives shall be regularly monitored, periodically reviewed and documented. -Major-

Finding The estate performance is recorded in the monthly progress report. Progress report for the month of May 2019 capturing financial performance, crop performance. Sighted management review meeting monitoring the achievement of the goals and the objectives of the management. Management also emphasized on laggard fields in last financial year against SYP that has aggravated the estate average yield by identifying the reasons of poor performance, site specific improvement measures and timeline required the yield’s limiting factors.


Criterion 4.6.3 Transparent And Fair Price Dealing

Indicator 4.6.3.1 Pricing mechanisms for the products and other services shall be documented and effectively implemented. -Major-

Finding Pricing Mechanism for FFB is provided by Palm Oil Mill based on weight & size of FFB bunches as estate merely dispatched the Scout Harvesting Crop.

The new mechanism will take place in January 2020 as the area coming into maturity and uniformed size of bunches.




Indicator 4.6.3.2 All contracts shall be fair, legal and transparent and agreed payments shall be made in timely manner. -Major-

Finding Contract is based on job basis after quotation provided by the contractors. Sighted work order with Tirai Kenari Enterprise (10 sep 2019) and Rajan Excavator Contractor Sdn Bhd (20 May 2019) has specified the payment term. Also sighted the payment evidence is not more than 7 days after job completion.


Criterion 4.6.4 Contractor

Indicator 4.6.4.1 Where contractors are engaged, they shall understand the MSPO requirements and shall provide the required documentation and information. -Major-

Finding No fix contractor being engaged in the Estate. MSPO requirements is explained to the contractors in Stakeholder Meeting.


Indicator 4.6.4.2 The management shall provide evidence of agreed contracts with the contractor. -Major-

Finding There is no fix contractor works occurred in the estate. Only job basis (less than 10 days) such excavator rental available. Work Order is established with the all information available such type of work, price and estimation complete time.


Indicator 4.6.4.3 The management shall accept MSPO approved auditors to verify assessments through a physical inspection if required. -Minor-



Finding Clause of ‘’The contractor shall provide the required documents and allowed MSPO certified approved officers to verify if needed’’ available in the work order document. Evidence with Tirai Kenari Enterprise (10 Sep 2019) and Rajan Excavator Contractor Sdn Bhd (20 May 2019).


Indicator 4.6.4.4 The management shall be responsible for the observance of the control points applicable to the tasks performed by the contractor, by checking and signing the assessment of the contractor for each task and season contracted. -Major-

Finding Contractor’s work is monitored by assigned staff based on working time and completeness.


Principle 7 : 4.7 Development of New Planting

Not applicable

4 ACKNOWLEDGEMENT, CONCLUSION AND RECOMMENDATION OF THIS ASSESSMENT

4.1 Acknowledgement Of Sign Off Assessment Finding Summary

Since the audit objectives as mentioned in the audit plan have been achieved and assessment resulted with no major non-conformity findings. Therefore, the lead auditor recommends to award the certificate of compliance MS 2530-3:2013 Malaysian Sustainable Palm Oil (MSPO) Part 3: General Principles for Oil Palm Plantations and Organized Smallholders to Yayasan Pembangunan Pendidikan India Negeri Perak (Kalvi Estate). The first annual surveillance assessment visit will be scheduled after 12 months of MSPO Certificate being issued.

]nou*APAVE Malaysia Sdn Bhd

f{D

Annex 1: Estate MaP

Date: 27th DecemberMa

S',gnoturet KSFERA$I

ran-E

Nome:

Mr.J. Jeyachandran

Orgonization Ndme:

KOPERASI NLFCS BE

Position:

General Manager - Estates

Date: 29th November 2079

Signature:Name: Muhd Jomalul Arif

Organization Name: APAVE (M) SDN.BHDPosition: Lead Auditor

MSPO-S U M MARYREPORT-N OV2O18_REVO1

40

MSPOPART3/N LFCSYP P I N PKALV t I O2l 2079

ACKNOWLEDGED BY:

PREPARED BY:

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Annex 1: Estate Map

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